Drought-hit Bush Councils Battle To Maintain Services

Drought-hit Bush Councils Battle To Maintain Services

The Age

Wednesday November 14, 2007

By Royce Millar

DROUGHT is hitting bush services and infrastructure hard, with 16 of Victoria's 20 most cash-strapped councils in drought-stricken areas.

The Municipal Association of Victoria has released its annual report card on local govern-ment finances, highlighting the mounting stress faced by communities in drought-declared municipalities.

Twenty of Victoria's 79 councils are deemed to be financially troubled, with seven at "high risk" of being unable to maintain key assets or repay debt.

The association refuses to divulge the list, but inquiries by The Age indicate that drought-affected shires in the state's west and north including Buloke, Horsham, Strathbogie and Yarriambiack are among those in trouble.

Only three metropolitan councils are believed to be among the 20, although not in the high-risk category.

Councils affected by the big dry are seeking to minimise rate rises, leaving them with inadequate funds for infrastructure or to repay debts.

Association president Dick Gross said councils in stress shared common features, including small populations, large geographic areas and extensive road networks.

Yesterday the MAV and the Victorian Farmers Federation called for all major political parties to commit to a special regional council infrastructure fund. The MAV also called for a one-off $30 million outlay for councils at most risk of failing to maintain key assets or pay debts.